Business Other News 18 Jun 2016 Hotel occupancy reac ...

Hotel occupancy reaches 60 per cent after a four-year gap

DECCAN CHRONICLE.
Published Jun 18, 2016, 1:10 am IST
Updated Jun 18, 2016, 1:10 am IST
Domestic travel grew by 9.7 per cent in 2015, while expenditure increased by 7.6 per cent.
According to consulting and services organization HVS, the Indian hospitality sector is surging with key drivers of growth in place.
 According to consulting and services organization HVS, the Indian hospitality sector is surging with key drivers of growth in place.

Hyderabad: In a sign that hints at the revival of discretionary spending and improved economic activity in the country, hotel occupancy has surpassed 60 per cent for the first time in four years in 2014-15 owing to growth in domestic tourist arrivals, and improvements in the economy and supply lag.

“The growth in occupancy does paint an optimistic picture and the recovery has been subtle, yet evident. This growth has been organic as a result of the equally paced increase in supply and demand. Further, according to World Travel & Tourism Council, the contribution of travel and tourism to GDP is expected to continue to grow, which in turn is projects a positive outlook for the sector,” said Jean-Michel Casse, senior vice-president, operations, AccorHotels India.

 

According to consulting and services organization HVS, the Indian hospitality sector is surging with key drivers of growth in place, especially with the implementation of pro-tourism initiatives by the government, such as visa-on-arrival to drive inbound travel in the country.

Domestic travel grew by 9.7 per cent in 2015, while expenditure increased by 7.6 per cent. Between 2015 and 2019, domestic and inbound travels projected an average annual growth of 9.7 per cent and 8.4 per cent respectively.

In an attempt to tap the growing demand, he said AccorHotels India is planning to have a network of 45 hotels by the end of this year and 80 hotels by 2020.

 

“Apart from our brands like Novotel, we will also be increasing the presence of Mercure, our midscale brand,” Mr Cassé told this newspaper, after inaugurating second Mercure ho-tel in Hyderabad recently.

One of the new trends seen in the hospitality industry, he said, is an increase in the number of vacations being taken and short weekend vacations.

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